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Journal North: Home | Sports | Opinion | Obits | Entertainment
Sunday, July 06, 2008
Santa Fe County Helps Oil Fight
By Raam Wong
Journal Staff Writer
Rio Arriba County is getting some help in its battle against an oil and gas company's drilling plans from its neighbor to the south.
Attorneys for Santa Fe County — embroiled in its own drilling controversy — last week filed a legal brief in the oil company's lawsuit against Rio Arriba, arguing local governments do in fact have the authority to regulate the industry.
“This is a matter of critical importance to Santa Fe County, Rio Arriba County and every city and county in the state of New Mexico,” the amicus brief states.
As record gas prices motivate energy companies to explore in frontier areas of northern New Mexico, local officials in places like Mora and Tierra Amarilla are scrambling to update their drilling regulations.
In April, the Rio Arriba County Commission adopted a four-month moratorium on new drilling in response to Approach Resource's proposal to drill 10 wells in the Rio Chama watershed outside Tierra Amarilla.
Approach filed suit against the county in May. The Fort Worth, Texas, company argues the drilling ban amounts to a taking of its mineral rights and that the regulations being written by the county in the meantime are the province of the state, not local government. The company is asking the federal courts to overturn the moratorium.
Santa Fe County has taken a similar tack in response to Tecton Energy's drilling proposal for the Galisteo Basin southeast of Santa Fe The county also imposed a moratorium is meant to buy time to beef up its oil and gas rules, study the basin's resources and ensure the region has adequate public facilities and services. Tecton has also threatened to sue for unlawful taking of its property.
In its brief filed in the Approach lawsuit, Santa Fe County argues local regulations are not pre-empted by state law and asks the court to dismiss the suit. The state Legislature has delegated to counties “police power” — the authority to write laws promoting the health and prosperity of residents, the county brief states.
The fact that the state Oil Conservation Division has regulatory authority over the industry is not sufficient evidence to conclude state authority trumps local government when it comes to oil and gas, the brief states.
State regulations fall short because they do not minimize the off-site impacts of drilling through control of the location of drilling sites, and do not assure public facilities and services are available or protect wetlands, habitats and historical treasures, according to the brief.
In January, Gov. Bill Richardson imposed his own five-month moratorium on drilling in the Galisteo Basin and directed state agencies to work with local governments on the regulation issue — a move the brief argues highlights local authority over the industry.
Rio Arriba County staffers have been critical of Richardson for jumping into the Santa Fe fracas while remaining silent about the Tierra Amarilla proposal. Richardson's office has not responded to inquiries about whether the governor would also support a state-mandated drilling moratorium for Rio Arriba.
Santa Fe County attorneys were joined in filing the brief in the Rio Arriba lawsuit by the New Mexico Association of Counties.
“We're trying to preserve local control for other counties who might face similar situations,” association executive director Paul Gutierrez said Saturday.
The brief states that Approach's request for an injunction against the county would “clearly and adversely affect the public interest by subverting the rightful exercise of the police power by Rio Arriba County's Board of County Commissioners who have been elected to protect the public health, safety, morals and general welfare of its citizens.”
The counties appeared to receive additional support from the state Energy, Minerals, Natural Resources Department on Thursday. In a report about the Galisteo Basin, the department recommends that local governments adopt ordinances addressing issues like setbacks, noise and air pollution at drilling sites.
Rio Arriba is asking the state Oil Conservation Division to revoke four of Approach's current drilling permits and to deny six others that are pending. The county argues drilling could pollute a crucial source of the state's surface waters. Approach denies that, saying it will use a closed-loop system and truck waste away from drilling sites.
Oil Conservation Division spokeswoman Jodi McGinnis Porter said a hearing officer would soon begin reviewing transcripts from hearings on the Approach permits and make a recommendation to the division's director.
Santa Fe County spokesman Stephen Ulibarri did not return calls for comment last week.